Apple Watch Demand Slides Significantly in June as Launch Momentum Wanes

[robbyx]

Back on AppleInsider, I felt that, for the first year, fewer than 10 million sales would be a failure, 10 million to 14 million would be disappointing, 15-19 million would be good, and 20 million or more would be excellent.

The fact that Tim Cook has not once hinted at sales figures is, in itself, a bad sign. The excuse that he doesn't want to help the competition is lame; if sales were brilliant, he would have trumpeted them from the rooftops.

I predicted that the Apple Watch would flop from the start. So it is proving. It represents Tim Cook's first new product since the death of the great Steve Jobs, and is proof that Apple have lost it under him. As such, his days as CEO should be over. He should return to his position as COO and let someone with passion for Apple products lead the way. I would suggest Craig Federighi as a prime candidate.

I want to see Apple become great once again. It won't happen under Tim Cook.

Disagree. Tim is doing a great job. Don't blame him for the lack of innovation in the industry in general. We're in a technology plateau. There are a lot of exciting technologies in the early stages of development that will be exciting in the future and lead to amazing new products. But they are years away. People need to stop expecting a showstopper every year. It's unrealistic to the point of being ridiculous.

Tim is doing exactly what we need him to do. He's running a well oiled machine. He's selling tons of the bread and butter product (iPhone). Craig the used car salesman doesn't strike me as CEO material.

The watch is a bomb. Like you said, if sales were strong, he'd be throwing out numbers every chance he got. But that alone doesn't make him a bad CEO.

 

[thekeyring]

Waiting for iPhone independence version here.

That + wireless earbuds in the box, please

 

[Mr Fusion]

What amazes me is that, if that's true (and that is another matter, because i'm not sure I agree with you 100%), that Tim or Jony didn't say "Hold on. This is a dead end here" ... why they weren't really honest with themselves. They know the pressure riding on the first post-Jobs product. I can only imagine they were confident with it. Or know the roadmap and needed to launch this Watch to find out what people would use it for so they could fine-tune the next gen... I'm not sure.

I think they went with the watch because everyone else was doing it. I don't think Apple knows what the next revolutionary product line is. I don't think any tech company does. They're all grasping at straws with watches, VR, augmented reality glasses, smart TV's, smart home... To me they're all out of ideas and don't know what to do next. It's why I've been very "meh" about technology for a while.

 

[thekeyring]

Disagree. Tim is doing a great job. Don't blame him for the lack of innovation in the industry in general. We're in a technology plateau. There are a lot of exciting technologies in the early stages of development that will be exciting in the future and lead to amazing new products. But they are years away. People need to stop expecting a showstopper every year. It's unrealistic to the point of being ridiculous.

Tim is doing exactly what we need him to do. He's running a well oiled machine. He's selling tons of the bread and butter product (iPhone). Craig the used car salesman doesn't strike me as CEO material.

The watch is a bomb. Like you said, if sales were strong, he'd be throwing out numbers every chance he got. But that alone doesn't make him a bad CEO.

People who suggest Craig as CEO clearly have no idea what they're talking about. Hiring a CEO for their stage presence is the worst idea I can think of.

 

[iapplelove]

I still don't want one

 

[Hog Milanese]

Good. Maybe they'll focus on their core products more. Specifically, a refreshed rMBP lineup, a rMB that can truly replace the Air lineup, a new nMP lineup with TB3/USB-C, and a TB3/USB-C 5k 27" display for the same. And while we're at it, a 4K 21.5" display (same as new iMac forthcoming) for lesser machines to power.

 

[TeamMojo]

Not surprised. They built it like a phone instead of a watch. Glued together, lots of ribbon cables. And the short battery life is not worth the color display and connectivity. And the upgradibility of a very expensive case/band that becomes obsolete withing a year is also a big issue. There is definitely a market for the device, but they need to go back and rethink several features to get it to be more practical and functional.

Bottom line is the the iPhone flourished when it could replace three devices and supplant other products in the same category. The Apple Watch could do the same if it was truly able to be a best of breed wrist communicator alert minimizer, exercise/ sleep tracker/ elite training watch, and fully functional standard wristwatch with great battery life and beauty. Instead it tries to be a bit of each, and ends up doing each more poorly than a Pebble/ Garmin Training Watch/ Beautiful high end jewelry chronometer

So far, it's just an early prototype.

 

[MacGod]

Exactly...
I really question whether this will go the way of the Apple TV where it sits along the wall at the Apple Store and every once in a while someone goes over and buys one.

It is not a revolutionary product. It's an expansion device to the iPhone, much like a BT earpiece.

Mark my words, the Apple Watch will evolve into some other type of wearable, like a touch sensitive projector on the back of your hand or forearm, like this:

My arm hair would get in the way! Keep triggering the wrong applets or something...

UGH!
B

 

[thekeyring]

I think they went with the watch because everyone else was doing it. I don't think Apple knows what the next revolutionary product line is. I don't think any tech company does. They're all grasping at straws with watches, VR, augmented reality glasses, smart TV's, smart home... To me they're all out of ideas and don't know what to do next. It's why I've been very "meh" about technology for a while.

I disagree, as they started work on the watch in 2011, and current smartwatches haven't sold too well. After all, they held back on music streaming for an age before companies like Spotfiy made them sit up and realise it was important. I just don't see that as being true for smartwatches.

If Tim Cook had said in an interview "Smartwatches are a bad idea, that's why no one is buying them" most of us would agree. Apple could have encouraged companies like Pebble to make watches that display iPhone notifications if smartwatches were destined to be "Accessories" only.

But Apple seems to have made a much bigger bet (financially and otherwise) that the Apple Watch will be a flagship product, not an accessory. It's seems incredible that this is a misstep, considering how well the company is doing across the rest of it's business. It could be Apple are playing a longer game, and everything will fall into place.

 

[Dorje Sylas]

And that graph demonstrates Apple's "whale" population. A "whale" as defined by its use with "Free2Play" mobile games that are supported almost enterialy a few high spending players. Very often people with more expendable money than is likey good so that dropping 500+ dollars on a 1st generation toy device isn't a big deal.

If Apple expects this to be a comparable trend to iPhone or even iPad, they misunderstand. The iPod Touch would be closer. Although worse since it's more expesnive for less fuction.

 

[inwardscello]

The Watch is doing great if it's sold 3 million so far. I mean come on, developers for Watch apps haven't even gotten a chance to work their magic, and still 3 million sold?

Already the Watch is a great product if you know how to use it, and that's the thing. There is so little awareness about what it can do. Everyone who asks me to show them what the Watch does is surprised. As the Watch grows and awareness for what it can do spreads, you're going to have a monster Christmas gift.

The bear thesis? 1) Bad battery - not a chance. Not sure I own another electronic that can do what it does for so long. 1.5-2 days on a full charge every time. 2) Too expensive - no, not really. The original iPod was $399 in 2001, and my $349 38mm black on black sport edition is a 100x better product. 3) Doesn't work without a phone - if you're chanting this then you're completely missing the point. You really do reach for your phone less, which is a good thing, especially when you're driving or with other people. Also, it does work without a phone to some extent. It's still a watch, with a timer/alarm/stopwatch, with an activity monitor, 2gb of music storage (plenty) that I can stream to my bluetooth headphones, and access to Apple Pay. But really, who's without their phone now anyways? Don't say when you're working out, because it's still fully functional for those purposes.

If you haven't bought it but are bashing it, you really have no other product in history to measure your preconceptions against. The Watch is awesome, and it will be a success.

 

[HenryDJP]

Well it looks like the people that hoped the Watch would fail are thinking they're somehow right and are having a secret party in their head. I never wanted the Watch and I never had any intention on buying one, but I can at least be open enough to realize it's a first-gen product that Apple will have to work on to build it into a success just as they have their other products.

 

[MacHead84]

There are 2 things I will never buy from Apple.
1. Apple Watch
2. 12inch new MacBook

Useless, powerless, expensive toys.

 

[robbyx]

I would NOT base anything on what I see here in MacRumors. If I did, I would assume that all humans were whiny little bastids.

Word. Now expand your horizons beyond MacRumors and find me Apple Watch raves. You don't see many. For such a hyped product, you don't see a lot of love expressed by the general public, reviewers, bloggers, etc. It's not an unmitigated disaster obviously. Some people like it. But now that it's available, I think most people see it for the ho-him product it is. If anything, I think this only further confirms that smart watches aren't the next big thing. Consumers aren't particularly interested in wearables, even ones with an Apple logo.

 

[bbbb4b]

First true new product category after SJ. Clearly it´s not Apple. Is it terrible? No. But it´s not iPhone/iPod/iPad class product.

Did you not read the article?
It's a "Apple Watch, iPod, Apple TV, Beats Electronics and accessories" class product.

 

[bladerunner2000]

Looks like the Apple Watch is going to have the same fate as the iPod Hifi.

Both awful products.

 

[oliversl]

I will wait 1 year in order to judge the watch as iPod like, iPhone like, iPad like or Newton like.

 

[gugy]

You don't need to take your phone after the first few workouts. I wear my watch swimming no problem. I get what your saying though. You need it certified waterproof so if it gets water inside it can be exchanged with less hassle. I'm taking chances with mine but I'm willing to do so. Been great so far. The water parks were not a problem either.

I see some people using it for swimming. There is even an article with a swimming app on the MR home page. I am a swimmer and would love to have the watch to track that. I am on the fence for now until there is a waterproof version so the warranty is good on this respect.

 

[TMRJIJ]

Wrong. I've been watching this company for 30+ years. I've made a ton of money investing in then over that time. I make my living using and supporting Apple products. And I still think the watch is lame.

There have been a wealth of articles about fashionistas returning the watch, blog posts expressing disappointment. Look at much of the sentiment here from people who bought it. You don't see a lot of love for the Apple Watch out there, in stark contrast to the endless iPhone love fest.

Apple Watch is Tim and Jony trying to prove they can do it without Steve. Not run a wildly successful company. Because clearly they can do that! But innovate. Launch a new product category and satisfy all the frothing fanboys who need something NEW. And guess what? It didn't work.

Your thoughts are not factual, their opinions. I'm sure there were articles about the iPad, iPod and iPhone when during their first generation. I am seeing the same mixed reviews as the iPad 1.
As I said before the iPhone had years to get where it is. You can't compared a 8 year old phone to an 3 month year old watch.
How do you know what Tim and Jony are thinking? Do you know them personally. The watch has been rumored for development for 4 years. Maybe Steve knew about the plans.
Once again just sit down, eat some popcorn and wait. Only time will tell how this product does.

 

[TMRJIJ]

There are 2 things I will never buy from Apple.
1. Apple Watch
2. 12inch new MacBook

Useless, powerless, expensive toys.

IYO dude.

 

[bunnicula]

Doesn't the Apple store always email you a receipt? It happens automatically if you have your CC on file with them already, for iTunes purchases or whatever. And if they don't have a record of your CC already, they'll ask for your email.

Nope. You have the option of paper receipts.

 

[Rogifan]

But Apple seems to have made a much bigger bet (financially and otherwise) that the Apple Watch will be a flagship product, not an accessory. It's seems incredible that this is a misstep, considering how well the company is doing across the rest of it's business. It could be Apple are playing a longer game, and everything will fall into place.

Ding ding ding I think we have a winner! Clearly Apple has spent a lot of time and energy on the Watch. They wouldn't do that with a product they don't believe in. The only Apple product that was truly a run away success from the very beginning was iPad. Apple plays the long game in everything they do. Most analysts are only focused on the short term and who's up or down or the flavor of the week. Two years ago Samsung could do no wrong and people were calling for Tim Cook's head. Now Samsung has had 5 straight quarters of profit declines and Apple is selling more iPhones than ever.

 

[Recognition]

Exactly...
I really question whether this will go the way of the Apple TV where it sits along the wall at the Apple Store and every once in a while someone goes over and buys one.

It is not a revolutionary product. It's an expansion device to the iPhone, much like a BT earpiece.

Mark my words, the Apple Watch will evolve into some other type of wearable, like a touch sensitive projector on the back of your hand or forearm, like this:

How do you project the colour black?...

 

[srosgen]

Apple Watch sales in the United States appear to have slowed down significantly in June based on new data that research firm Slice Intelligence shared with MarketWatch. Following a steep decline in the days after Apple Watch pre-orders commenced, which is to be expected of any product, daily U.S. sales remained relatively stable through May before experiencing a large drop-off last month as launch momentum begins to wane.

The report claims that Apple is now selling fewer than 20,000 watches per day in the United States, and fewer than 10,000 on certain days, while the logarithmic chart above indicates that sales dipped to as low as 4,000 to 5,000 units per day in late June. The data does not account for sales in Canada, Australia, United Kingdom or the twelve other countries where the Apple Watch is sold outside of the United States.

Slice Intelligence claims that two-thirds of Apple Watches sold to date have been the entry-level Sport model, far outselling the more expensive stainless steel Watch and 18-karat gold Edition models that start at $549 and $10,000 respectively. The research firm estimates that Apple has sold fewer than 2,000 luxury Apple Watch Edition models in the U.S. through June.

Slice Intelligence previously estimated 1 million Apple Watch pre-orders at launch, an average 30,000 Apple Watch sales per day in late May and an estimated 2.8 million total sales as of mid June. The research firm's sales estimates are based on e-receipt data from online shoppers in the United States that opted-in to have their inboxes tracked for email receipts.

Apple has not publicly disclosed any Apple Watch sales figures since the wrist-worn device launched in April, and will be grouping the device under its "Other Products" category, which combines sales of Apple Watch, iPod, Apple TV, Beats Electronics and accessories, in its quarterly fiscal reports. Apple's Q3 FY 2015 results are scheduled to be released on July 21 at 2:00 PM Pacific.

Article Link: Apple Watch Demand Slides Significantly in June as Launch Momentum Wanes

 

[robbyx]

Your thoughts are not factual, their opinions. I'm sure there were articles about the iPad, iPod and iPhone when during their first generation. I am seeing the same mixed reviews as the iPad 1.
As I said before the iPhone had years to get where it is. You can't compared a 8 year old phone to an 3 month year old watch.
How do you know what Tim and Jony are thinking? Do you know them personally. The watch has been rumored for development for 4 years. Maybe Steve knew about the plans.
Once again just sit down, eat some popcorn and wait. Only time will tell how this product does.

Everything here is an opinion mr know it all. The fact that Apple hasn't released any sales figures is extremely telling. I'm not really interested in eating popcorn and waiting. The product didn't interest me when it was announced. Now that I've used one, I'm even less interested. I only care about the Apple Watch if it affects my Apple investment. I don't see that happening anytime soon because I don't think this silly little vanity accessory really moves the needle for Apple in either direction.